Real estate analysts in the Greater Toronto Area are optimistic that a recovery might be in progress, with June statistics indicating a potential stabilization of activity following a slow start in 2025. According to the Toronto Regional Real Estate Board, home sales in the region decreased by 2.4% in June compared to the previous year, with 6,243 properties sold. However, there was an 8.1% increase in sales from May on a seasonally adjusted basis, suggesting a positive trend in the housing market’s recovery.
Similar to other areas, the GTA experienced a cooling real estate market this year due to economic uncertainties linked to the trade tensions between Canada and the United States. The decline in home sales in May and April, which were 13% and 23% lower year-over-year respectively, reflected this trend. Despite initial optimism for a hot market fueled by lower interest rates, the imposition of tariffs by U.S. President Donald Trump altered the forecast.
In June, the City of Toronto saw a 3.5% rise in sales compared to June 2024, with 2,319 properties sold. Conversely, sales in the rest of the GTA dropped by 5.6% to 3,924 homes. All property types experienced reduced sales in June across the region. The most significant decline was in townhouses, with a 4% decrease in sales, followed by detached houses at 2.9%. Condo sales decreased by 2.5%, while semi-detached homes saw a 0.7% drop in transactions.
Despite some optimism for a turnaround, real estate agent Vy Ngo expressed that many potential buyers remain hesitant due to ongoing uncertainties. Ngo described the current situation as the most challenging in her 12-year career, emphasizing the difficulties of navigating the unpredictable tariff landscape.
The average selling price in June fell by 5.4% year-over-year to $1,101,691, with the composite benchmark price also down by 5.5%. The GTA saw a total of 19,839 new listings last month, a 7.7% increase from the previous year. TRREB president Elechia Barry-Sproule noted that the rise in listings has provided buyers with more options and opportunities to negotiate lower prices, combined with favorable borrowing conditions.
Active listings in June reached 31,603, marking a 30.8% increase from June 2024. TRREB’s Chief Information Officer, Jason Mercer, highlighted the potential positive impact of a stable trade agreement with the U.S. and additional interest rate cuts on the housing market. The Bank of Canada, after maintaining its key policy rate at 2.75% for two consecutive decisions, is set to announce its next rate decision on July 30.
